MEL, Mineral Enterprises Ltd, a Karnataka based miner which has got approval from Supreme Court according to its A category status, have confirmed that it will auction its low grade iron ore in coming e-auction in Karnataka.
We have been dumping very low-grade iron ore in one of our mines in Chitradurga district for over 20 years. We have recently got approval to off-load this ore and it has been classified as low-grade iron ore (with 51-52 per cent Fe grade). Till now, we have managed to auction 6.1 million tonnes and 4.9 million tonnes have been despatched,†said Mr Basant Poddar, managing director, MEL .
He said the company would dispatch about 20,000 tonnes per day and clear the stock over the next three months. The company has managed to secure an average Rs 756 per tonne at the e-auctions for this ore.
Although small and medium steel and pellet manufacturers are not very comfortable buying low grade iron ore owing to weak demand and falling steel prices in the state.
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